RM 11-15-74 - Laserfiche WebLink

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5. PUBLIC HEARING (Cont'd) Mr. Kevin J. Butler, Commission Legal Counsel, asked Ms. Bauer on her above comments for clarification that previously the grants would have been limited to $5,000. Ms. Bauer explained that they still will be; but that previously, any sum of money for a giver house would have been limited to $5,000 but that it could have been a loan and grant application- -the grant depending on the income - -with the combined total for $5,000. Mr. Kent Wilcox advised the City Council has delegated authority to the Commission to adopt the guidelines. So far, from the experience of the Advisory Committee, very few of the applications for the rehabilitation loans and grants would require any type of a loan. Ms. Bauer advised they have come-.across some people who have stated they would like to fix up their homes but are not willing to undertake the financial commitment of a loan but do not now qualify for a full grant. We do not want people to drop out of the program because they are unable to pay for a loan. By elimination of the sliding scale, this will give a greater freedom in grants. Rev. Senns, Chairman of the Advisory Committee, advised he was appointed by the Mayor to this Committee to repre- sent the Southeast Neighborhood. He advised the Southeast Neighborhood PAC, who participated in the drafting of the guidelines, is not in favor of dropping the loan part of the program, as they want to prove they are capable of repaying, etc., and not have it just as a giveaway from the government. The problem the Committee has encountered is that they -don't see any feasible way to administer a loan program. He said he has personally dealt with some financial officers of various lending institutions in the City of South Bend. We also have Mr. Forrest Miller on our Committee from the First Bank and Trust Company. The lending institutions are not interested in taking up a loan program, at 3% interest, over a ten -year period, as they wouldn't even break even on it. The City doesn't have any facilities set up to handle it as yet; conse- quently, the Advisory Committee doesn't see any alternative except to simply drop the sliding scale. The Committee would not make any loans in this first phase; it would only make grants. He believes the value of doing it this way is that the possibility of going ahead with a loan program can be instituted at such time as the City has a facility to handle it. As Chairman of the Advisory Committee for the E -7 Program, RE:V. Senns said he is recommending that the Commission adopt their proposed change in the basic guideline to re- move the sliding scale. Mr. Butler asked when the loan program would be re- instituted, when it is feasible, if that then would require an amendment or revision of the guidelines back to the original provisions? - 7_